MoneyGram Rolls Out Exclusive Deal with UK Post Office to Provide International Money Transfer.

LAKEWOOD, Colo.--(BUSINESS WIRE)--Feb. 7, 1997--MoneyGram Payment Systems, Inc. (NYSE:MNE), a world leader in electronic funds transfer, today announced that its MoneyGram(SM) money transfer service was now available in 800 locations of the United Kingdom Post Office.

MoneyGram said that an additional 700 locations would be operating within 30 days as part of its contract with the Post Office Counters Ltd. (POCL), which operates nearly 19,000 postal counters for the UK Post office, the largest retail network in Europe.

The five-year contract allows MoneyGram to add as many locations as required to fulfill the demand for services. Last year, more than 100,000 money transfers were handled by the UK Post Office. Post Office officials believe as many as 5000 UK locations could be rolled out by the end of 1998.

MoneyGram operates through a worldwide network of more than 18,500 agents in 85 countries. The company's MoneyGram(SM) network operates 24 hours a day, seven days a week and funds are generally available to the receiver in 10 minutes or less. MoneyGram supplants Western Union which held the contract until this month.

"We have chosen MoneyGram(SM) as our sole provider of funds transfer because they have an extremely strong commitment to providing high quality services to customers wishing to transfer funds within the UK or around the world," said Mark Douglas, the director of POCL responsible for financial services.

"We are pleased to have been selected by the Post Office," said Rob Ayers, MoneyGram Executive Vice President responsible for sales and marketing outside North America. "The UK Post Office is an extremely important link for us and should have a significant positive impact on a number of other negotiations that are now underway.

"Having had our international operations based in London for many years now, we understand the needs of British consumers as well as the commitment of the Post Office to provide efficient, high value services to residents of the UK," he said.

Ayers said that the addition of the Post Office to its worldwide network is a major step in its international expansion efforts. In recent months, the company has also signed an agreement with Postbanken in Norway, adding 800 locations via the bank's branch network.

MoneyGram is a leading non-bank money transfer provider, allowing customers to transfer funds worldwide within minutes in 85 countries. MoneyGram offers services to individuals without traditional banking relationships, expatriates sending money home and tourists, businesses and individuals who need to send money quickly. The company also provides prepaid telephone cards. MoneyGram maintains a headquarters location in Lakewood, CO, and an administrative office in Saddle Brook, N.J.

CONTACT: MoneyGram, New York 

Gary P. Tobin, 212/685-7077